Personal Loans for Engagement Rings

Personal Loans for Engagement Rings

Marriage is a huge decision for anyone. But if you’re an immigrant in the US and you’ve decided to get married, then you may face some unique challenges. Purchasing an engagement ring is one of the biggest parts of getting engaged, but people often don’t have enough cash on hand to buy the ring up front.

A personal loan can make up the difference and allow you to spread out the cost of the engagement ring over a period of months or years. While immigrants, in particular, have a difficult time getting credit, there are loan options available for immigrants. In this article, we explore those options and walk you through an engagement ring personal loan.

Are There Personal Loans for Engagement Rings?

Yes, you can take out a personal loan to pay for an engagement ring. Unlike an auto loan or a mortgage, you can use the funds from a personal loan for whatever reason you wish.

Personal Loan for Engagement Ring Pros and Cons

People often choose to pay for their engagement ring with a personal loan because they’re a easy to obtain. Most engaged young men can’t cover the entire cost of the ring out of pocket, but there are pros and cons to taking out a personal loan.

Pros of Personal Loans for Engagement Rings

First, personal loans don’t require that you put down any collateral to obtain the loan, as is the case with mortgages. You can get the money that you need right away, and you don’t need to make a down payment.

Also, with a personal loan, you can spread out the cost of the engagement ring over a long period of time. Most lenders offer repayment terms as long as 7-10 years, though you’ll end up paying a lot of interest in that case. However, the interest rates that you’ll get on a personal loan are typically better than credit card rates.

Cons of Personal Loans for Engagement Rings

Taking out a personal loan to cover the cost of your engagement ring isn’t without its downsides, though. For one, the rate you get will vary based on your finances. If you have a poor credit score or insufficient income, then you may get a relatively high rate.

Also, you may get stuck with substantial fees that are often levied by less reputable lenders (for instance, origination fees). If you do take out a personal loan for your engagement ring, find a lender that doesn’t hit you with surprise fees.

Should You Get a Loan for an Engagement Ring?

If you can afford to pay for the ring in cash, then that’s always the best move. But this is unrealistic for most people. A personal loan is a solid choice for people set on getting married who don’t quite have the cash for the ring.

You should make sure that you don’t overspend if you are taking out a personal loan for an engagement ring. The longer the term length, the more interest you will pay, so you want to borrow as little as possible. Shop around for rings and try to find more affordable options that don’t sacrifice quality.

Make sure that you shop around for quotes from different lenders as well. Each lender has its own criteria for evaluating applicants, so you may get offered a much better rate from one lender than another.

How to Get a Personal Loan for an Engagement Ring

There are plenty of lenders out there, and they all offer different terms, loan amounts, term lengths, and more. The first thing you should check is the interest rates they offer. Each lender has a range of interest rates, so find lenders that offer rates on the lower end of the scale.

Then, make sure that the loan amounts they offer will be enough to cover the cost of the ring. Finally, check the term lengths they offer and find out if they charge any surprise fees. Most lenders can get you the funds within a day or two after getting your application approved.

Why American Banks Don’t Lend to Immigrants

Getting a personal loan sounds like a walk in the park, right? Well, it’s not so simple for immigrants. Immigrants are disadvantaged in the loan market because they don’t have a credit score or financial history in the US. These are the main metrics that lenders use to determine eligibility for a loan, and banks are reluctant to lend to individuals without a credit history they can draw from.

There are other reasons that banks discriminate against immigrants as well. Immigrants often have inherently temporary status in the US. Their legal presence is based on their visa (permanent resident status is somewhat different). If their visa status changes, then they will likely have to leave the country, in which case the banks would be unable to get their investment back.

Add to all this the fact that immigrants often struggle to find a cosigner, which many lenders require for eligibility, and you get a sense of how tough it can be to get a loan in the US as an immigrant. There are other options, though, which we explore in the next section.

How to Get an Engagement Ring Personal Loan with Stilt

The unfortunate difficulty that immigrants face in getting loans and credit in the US has created a space that Silicon Valley entrepreneurs are beginning to fill. Stilt, an online lender headquartered in San Francisco, is one such company. Stilt’s eligibility criteria is built specifically to include immigrants. Instead of laser-focusing on credit score, Stilt considers peripheral factors that indicate future earning potential. Stilt loans also do not require a cosigner.

Getting a loan with Stilt is straightforward and simple. First, you complete an application on Stilt’s website. You will be asked to provide some personal and financial information, along with authorizing a soft credit-pull. Once the application is submitted, expect to get a response within 24 hours. If approved, Stilt will offer you a range of amounts, term lengths, and an interest rate. Then, you choose the amount and term length of the loan and sign a promissory note agreeing to the terms of the loan. The funds will be deposited in your account shortly after.

Personal Loans
 for Non-U.S. Citizens!

Check Loan Options

Loans for up to $35,000. No cosigner required. No prepayment penalty.


For many people, the choice is between either using a personal loan or credit to cover the cost of an engagement ring, or not purchasing an engagement ring at all. You probably won’t let something like finances stop you from getting married, and a personal loan gets you better rates than most credit cards. If you do your homework and find a reputable lender whose eligibility criteria doesn’t exclude you, then a personal loan is a responsible way to pay for an engagement ring.

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